M&M share price falls 5% on heavy volumes, trade lower for 6th straight day

M&M share is quoting lower for a sixth straight trading day, slipping 13 per cent during the period

Mahindra & Mahindra (M&M) share price slipped 5 per cent today, to Rs 2,692.75 on the BSE, in Monday's intraday deal amid heavy volumes. At 10:06 AM, M&M stock was the top loser on the BSE Sensex and Nifty 50 indices, down 4.6 per cent, as compared to 0.73 per cent decline in the benchmarks.

 

M&M share was quoting lower for the sixth straight trading day, slipping 13 per cent during the period. It has corrected 15 per cent from its all-time high level of Rs 3,276.30 touched on February 10, 2025. However, in the past one year, M&M has outperformed the market by surging 52 per cent as against a 3.8 per cent rise in the BSE Sensex.

 

 

On February 13, the board of Mahindra Lifespaces Developers Limited (MLDL), the real estate and infrastructure development business of the Mahindra Group and subsidiary of M&M, approved a fund raise of up to Rs 1,500 crore through Rights Issue to the eligible shareholders of the company. M&M held 51.15 per cent stake in MLDL.

 

Shares of MLDL hit a 52-week low of Rs 345.95 as they fell 4 per cent in the intraday trade on the BSE. Mahindra Lifespaces share has tanked 49 per cent from its 52-week high level of Rs 679.15, which it touched on April 25, 2024.

 

MLDL said the rights issue proceeds will be utilised to pare down the company's existing debt and support its future growth plans.

 

MLDL's development footprint spans 39.44 million sq. ft. (saleable area) of completed, ongoing and forthcoming residential projects across seven Indian cities; and over 5000 acres of ongoing and forthcoming projects under development / management at its integrated developments / industrial clusters across four locations.

 

Meanwhile, M&M, in a separate exchange filing on February 14, announced that its Electric Origin SUVs, XEV 9e and BE 6, set a new record in India's EV segment by securing 30,179 bookings on the first day, with a total booking value of  Rs 8,472 crore (exshowroom price). The XEV 9e accounted for 56 per cent of the bookings, while the BE 6 contributed 44 per cent, with 73 per cent of customers opting for the top-end Pack Three variant featuring a 79-kWh battery.

 

The bookings are noteworthy considering that the total electric passenger vehicle sales in India were about 1 lakh units for the CY2024. The Made-in-India, For-the-World eSUVs have gained immense traction since their unveiling on November 26, 2024, signaling rising demand for premium EVs. Deliveries of these models will commence from mid-March 2025, in a phased manner, with customers receiving tentative timelines within three weeks through regular updates, M&M said.

 

The company, in a recent analyst conference call, had shared that initially it would be producing ~5,000 units of electric vehicles per month, thereby indicating ~6 months of firm orderbook, ICICI Securities said in a note. The brokerage firm maintains a positive view on M&M amidst its consistent positive surprise on new product launches and ability to grow ahead of the market.

 

Meanwhile, Nuvama Wealth Management estimates 14 per cent compound annual growth rate (CAGR) for revenue over FY25–27E, led by robust growth of 16 per cent in autos and 10 per cent in the farm segment. Besides, the brokerage firm reckons better scale shall boost profitability, driving core earnings.

 

"This would sustain return on invested capital (RoIC) at 45 per cent-plus. Stock catalysts include production ramp-up and incremental announcements pertaining to EVs," it said with a 'Buy' rating on M&M stock with a SoTP-based target price of Rs 3,700.

 

"We forecast a recovery with revenue CAGR of 10 per cent in the farm segment over FY25- 27E on expectations of market share gains, benign government policies for farmers and robust exports. New products such as Oja, Target, and Naya Swaraj are strengthening the product range, and shall support market share gains in the domestic and overseas markets," Nuvama Wealth Management said in result update.